Piggybanking method with multiple banks or within one bank?

Legacy_user

Hiya. For those who piggybank (so have different bank accounts for different purposes), do you find it easier to piggybank with accounts across different banks/building societies OR within one bank - so having multiple accounts and naming them different things?


I started piggybanking in March, and I have main banking within Natwest, and then split my accounts between different banks, and now I'm thinking of making it slightly easier and doing it within Natwest (whom I do have 2 current accounts with - bills + spendings, and a savings account) OR Starling, as they pay interest.


What do others here do or suggest, and have you done both, and why have you chosen to do it the way you have?

bournefree

You need to do whatever suits you best and will work for you. I'd recommend having accounts with two different banks, just in case one has a meltdown, like TSB. Then find out how the different types of accounts, online online / phone / branch, which suit you best, and their rates of interest, e.g. 5% up to £1,500 or £2,500 depending on the bank (in this case TSB and Nationwide). Having accounts with lots of banks will of course mean having to remember their different systems.

Anthorn

If a bank offers the ability to open several savings accounts then you can do it with the same bank. An alternative is a jam-jar account at a credit union which is about as Piggy-bank as it gets. Starling Bank current account offers a similar jam-jar facility with its "Goals".

jblackmore

I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(

eskbanker

jblackmore wrote: »

I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(

Who do you think is better at money management, someone with multiple pots earning 0.1% interest, or someone putting everything into a single account earning, say, 1.5% and not relying on a financial institution to keep on top of their savings?

I get that some people find it easier to segregate their money, in the absence of willpower and organisation, but dressing that up as better money management seems to miss the point and doesn't look like particularly intelligent finance to me....

isasmurf

jblackmore wrote: »

I've been piggybanking/jam jar for many years using an IF account, so I have seperate 'pots' for Car, kids, holidays, funstuff and rainyday fund, the interest rate is appalling (0.1% I think), but its very easy to manage.

Every year or so I look around for something better but there never seems to be anything ? I have tried opening extra Lloyds accounts (where my current account is), but after the first year the interest drops to nothing on those too.

Really surprised more banks haven't cottoned onto this and offer 'split' accounts, maybe they are just blatantly realising they don't benefit from people being better at money management, so making it harder increases their overdraft fee profit ;(

I believe the digital app only banks offer this, but you could achieve the same thing with better rates by opening a savings account or regular saver for each 'pot'.

redux

It seems to me that having most transactions in one account would be simpler than having to remember to keep checking how much is being transferred to several separate budgets.

That said, I have work income and standard expenditure in one account, and another account where the savings and investments radiate from and sometimes to.

jblackmore

eskbanker wrote: »

Who do you think is better at money management, someone with multiple pots earning 0.1% interest, or someone putting everything into a single account earning, say, 1.5% and not relying on a financial institution to keep on top of their savings?

Ouchie, maybe i meant lazy money management. I have standing orders paying in every month so i guess i think I'm doing OK as the washing machine broke this week and I had money ready to replace it instantly.

I'm sure i could get better interest by moving money around regularly and maintaining jars by spreadsheet but the amounts are pretty small so for me the hourly rate isn't worth my free time.

soulsaver

Try Tesco - you can have (at least) 6 savings accounts and a couple of current acs.

You can nick name each of them and they pay IIRC c 1.36% currently inc 1 yr fixed bonus rate, but they bring new ones out every few weeks.

The current acs pay 3% until April but to get it each'll need 3 DDs (or 1 off weekly) & regular funding, which can be automated by SO in and out again.

Anthorn

Sweetcake wrote: »

Hiya. For those who piggybank (so have different bank accounts for different purposes), do you find it easier to piggybank with accounts across different banks/building societies OR within one bank - so having multiple accounts and naming them different things?


I started piggybanking in March, and I have main banking within Natwest, and then split my accounts between different banks, and now I'm thinking of making it slightly easier and doing it within Natwest (whom I do have 2 current accounts with - bills + spendings, and a savings account) OR Starling, as they pay interest.


What do others here do or suggest, and have you done both, and why have you chosen to do it the way you have?

I simplify it by using a jam jar account at my local Credit Union. I transfer an amount equal to my monthly outgoings from my current account by standing order and then the CU splits it into different jam jars and then pays the accounts when due.

First of all you will need access to a local Credit Union which secondly also provides jam jar accounts. Also consider that if there is a money saving discount for paying by direct debit you will lose that discount.
http://www.abcul.org/home

Terry_Towelling

jblackmore wrote: »

Ouchie, maybe i meant lazy money management. I have standing orders paying in every month so i guess i think I'm doing OK as the washing machine broke this week and I had money ready to replace it instantly.

I'm sure i could get better interest by moving money around regularly and maintaining jars by spreadsheet but the amounts are pretty small so for me the hourly rate isn't worth my free time.

In these times of austerity I recommend reducing your hourly rate and using pen and paper to monitor the different pots (if you really don't want to use a spreadsheet) and hold the money in a single account that could pay you up to 50x more than you are currently getting.

Once you have that in place there should be no need for multiple standing orders anymore, very little need to keep moving money around, the washing machine will hopefully keep working and you will be able to reinstate your former hourly rate in no time.:)